Property Values

Talking the obvious here..... but.... ..

Property values only matter if you are buying or selling a property, this would also include refinancing as well.

So no need to panic in falling/flat markets if you don't have to sell.

 

Or paying land tax.

 

yes, good point, forgot that little gem

 

The gift that keeps on giving.

 

Thanks for the heads-up.

 

Those that bought in the boom and have negative equity might be worried though.

 

Yes
You need to be able to hold the property, or take a hit. Sometimes it better to take a hit, depending on where and how much I guess??

 

Why would they be worries if they have bought a house they want to live in and plan to be there for many years?

 

Exactly.

It is only a problem if they don’t have the income to hold and don’t have the cash reserves to cover the shortfall.

 

Read my first post, sums it up

 

I think only in the case of needing to sell now, or, planning to sell in the next (insert time period) but realizing a loss now would be beneficial to offset gains in the current financial year.

- Andrew

 

Bull makes money & Bear makes money too.. Bear is good time to find next booming spot and jump in. There is a price to be paid anyway. Financing may be lot harder...

 

My mother had to sell her home in Brisbane in 2011 after the floods, eight klms from CBD. This was due to her health (age) and requiring a completely different style of housing with no stairs. Her home had recently lost about $100k in value. It was on the market for about six months after we renovated it. This situation is not related to "purchasing at the height of the boom". The Qld govt (Labor) kindly thought they would double the price of stamp duty that year, so there were hardly any purchasers, even if banks were willing to finance just about anyone. You know where Anna Bligh works now, right?

 

Because if you have a propwerty that is worth less thasn you owe the bank they can ask you to make up the shortfall.

Exactly! And many wouldn't have extra cash if they have just bought.

 

^^^ very rarely does the bank ask you to make up the shortfall if you are making repayments

 

Did anyone faced this.. do bank ask to pay shortfall?

 

Having been in the property market for nearly 40 years (and witnessed a number of booms and busts), I have NEVER faced this .

But as a some are saying, this one is different. Maybe, it will happen this time ?

Yawn, yawn, ...

 

I was talking to my brother about this at our family Christmas party late in the day last year just as I bought out the duty free fire-water ..

This is going back over 25 years before the fast bucks MB industry started and the local branch bank manager went on 3 months long service leave,then they bought in a new manager lets just call the Lady the chainsaw ..

They were in the process of calling in all his loans and most of his mates were in the same sinking boat ,I think from memory they gave him 3 months ,and he had not paid tax for three years as some people with that work within the legal system work the system this way because they can ..

I lent him the money to keep everything going ,it was over 100k all his kids were in private schools credit cards maxed out and the pain and frustration on his face but he held it all with my interest free loan no contract no time repayment plans just as simple handshake..

Then we looked at all the family members in front of us ,and he said if I did not help during that bump in the road he would not be sitting next to me as suicide and the shame that comes from serious financial loss and the so called loss of social status is very different from a medical diagnoses where the doctor looks you in the face and tells you there is a problem and you have less then six months to live as the cancer is all through your body ..

So yes it does happen..

 

Wow, good on you, this is what family does

 

That's true but the fact that they can is something I wouldn't want that hanging over my head.